LED production equipment rebounds and grows

In the first quarter of this year, the operating income of Micro companies increased by 46.24% from the same period last year, and the net profit during the same period increased by more than 4 times to 140 million RMB. In terms of products, benefiting from market conditions and the company's product competitive advantages, the company's etching equipment and MOCVD equipment revenues were 348 million RMB and 133 million RMB, respectively, an increase of 63.75% and 76.85% over the same period last year.

In contrast, the LED equipment market in 2020 is still showing a downward trend. Affected by the LED market, the company's MOCVD equipment revenue was 496 million RMB, a year-on-year decrease of about 34.47%.

It is understood that MOCVD equipment is the key equipment in the LED epitaxial wafer production process. Generally, MOCVD equipment purchases generally account for more than half of the total investment in the LED production line, and it is the most important equipment in the LED epitaxial wafer manufacturing. At present, MOCVD equipment is mainly used for epitaxial growth of gallium nitride-based and gallium arsenide-based semiconductor materials. Among them, gallium nitride-based LED MOCVD is mainly used for the production of gallium nitride-based LEDs and epitaxial wafers for power devices.

According to the institutional survey disclosed by China Micro Corporation today, some investors asked about the company's MOCVD equipment in the annual new market share has reached more than 70%, and asked about the latest product sales. Company executives pointed out that the company’s MOCVD equipment currently has a leading advantage in the field of gallium nitride-based LEDs. In the future, on the basis of maintaining the current market position and technical competitive advantage, it will conduct new Mini-LED displays and power devices in the future. The company will study and judge market trends, and continue to launch new MOCVD equipment based on customer and market needs, covering different application markets.

According to reports, China Micro Company will adopt a three-dimensional development strategy. Including the expansion of products in the field of pan-semiconductor equipment, from the etching equipment that has been developed for the manufacture of MEMS and image sensors, the MOCVD equipment for the manufacture of blue LEDs, to more micro-device processing equipment, and deep manufacturing the ultraviolet LED, Mini-LED, Micro-LED and other micro-device equipment products.

Judging from the market reaction, since the disclosure of the first quarterly report by China Micro, the company's stock price has continued to show a rebound trend, with a cumulative increase of 21.6%. As of the close of the market on June 1, the company's stock price rose 5.15% to close at 137.53 RMB per share.